Patni’s Jeya Kumar is urging employees to become “entrepreneurs” inside the company — and in the process discover the firm’s next spurt of growth...
So here is Jeya Kumar’s dangerous idea to speed up the journey towards the stretch target. It is a chance to become an “entrepreneur” inside the company. All, but the top 50 people inside the company, can pitch ideas for services that Patni doesn’t offer currently.
Every year the company will pick two ideas to support. To create the same risk — reward structure of entrepreneurial environment, the employee whose idea gets selected will have to forego his variable pay for a period of 18 months. This is the time in which the idea will have to be brought to market. The “Patni-preneur” will have the freedom to pick his team. He can, for instance, make an “offer” to an ace solution architect working in another division and bring him on board. If the solution architect accepts the offer, he too foregoes his variable pay, for the time that the project is brought to market.
Once the idea is accepted, key members of the senior team will act as mentors and offer active support to the team that is executing the idea,” says Jeya Kumar. The entire variable compensation withheld will be repaid once the service is launched within 18 months or earlier. The employee is also eligible for promotion to the appropriate level based on the role-based organisation model that the company is implementing in December 2010.The upside for the “Patni-preneur” can be as high as 20 percent of the revenues generated from the service line that he/she has created. The person will also get to run that business till it reaches a size where it may be needed to be integrated into another service line or a division.
“It is quite possible that the employee who creates a successful service line may end up earning more than the CEO. CEOs should be comfortable with that. I am,” says Kumar.
-Comments?
This concept is available today within apple, they have small departments within company who operate as startups company and Jobs only monitors them.
ReplyDeleteThey are modular in such a way and responsible for innovation within thr organization. It did not work for them till they came up with end user products e.g iPoD where users tell them what is good instead of retailers, not like adobe telling them what to build.
“Instead of need driving the innovation, innovation is driving and creating the need” instead of top management asking to create services, Solutions architects are crating those services and trying to sell them and getting results right away. This will only work if good idea get chance to come in front of end users and not getting killed in between.